The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-04-08
A VERY WEAK AND IMPOSSIBLE
MEASURE.
The Commission Already Concede the
'Long and short Haup' Claute
ImprActicable.
SENATOR LELAND STANFORD'S
CORRESPONDENCE
With Judge Cooley, Which Shows
COncluslVely That 1t is a Great
Drawback TO Competition.

Judge 7. M. Cooley, Chairman:
Tbs question is before us, in compe-
tition with the Suez canal route for
business with China and Jspar, whesh-
or we can make competing prices
through to Atlantic ports at less rates
than local rates charged, say from San
Francisco to New York, and the line
from China and Japan being q contin-
uous one, in connection with the Gem
tral Pacific and Union Pacific railways.
The question is ALEC before US oil max
ing, In competition with Cape Horn
and the Isthmus Of Panama, railroad
rate that permits shipments between
San Francisco,and Atlantic ports, those
rateH in order 10 meet competition be-
tition being necessarily lower for
longer distance than those charged for
thorteY, anC far below what would
be Q reasonable rate for the service
performed. We construe the fourth
section of the interstate commerce
act practically to be, in substance,
the application 10 interstate commerce
of the common law principle that the
shipper avail himself OF competition
and that q less rate may be- charged
for longer than q shorter distance,
provided more could not be obtained.
II the right Of competition 10 recog-
lied 90 between the carrier and tha
shipper, our carrying business will not
be interrupted, but otherwise we shall
be unable to compete for the Chinese
and Japanese trade with the SuCz Ca
nal, and also unable TO compete with
the water routes by Panama and Cape
Horn for business originating In GAL
iiornia. We await your construction.
LELAND STANFORD.
President Southern Pacific Railroad.
WASHINGTON, D. c., April s, 1887.
TO LELAND Stanford. San francisco:
Application to the Commission for
exception under the interstate COM
merCe law can only be granted after
investigation into the facts. A veri-
fed petition setting forth the grounds
OF application should be presented.
T. M. COOLEY, Chairman.
SAE FRANCISCO, CAL, April s, 1887.
To Judge T. N. Cooley, Chairman, Wash
inston, DC
We do not ask for q railing upon q
special case, but construction OF sec
too 4, rs all the business between Pa
ci6c and Atlantic ports is governed by
competition, the business from ports
OF China and Japan, across the Conti-
nent, TO Atlantic ports Is governed by
competition, and agents in China aud
Japan, 10 obtain blu .iness, make rates
to meet the competition Of Suez. One
oil tho Oriental and Occidental Com.
pany's ships will arrive In few
days with cargo mostly for
points east Of the Rocky Noun.
talps. II the rates established by the
other companies are maintained
tie contracts made for Shipment can
not be carried out. All the through
business OF the overland lines Is in
volved, and we cannot accept and dis
patch fieight except upon general
ruling applicable to sll business, The
question arises upon every ton
OF fro ght offered for shipment,
and practically we find ourselves I'M
able TO do through bueiness. You
will Gee, therefore, that a special ruling
or exception will not meet the case, as
it ariees upon every ton Of freight Of
fersd. LELAND STANFORD"
WASHINGTON, ID. c., April 7, 1857.
Leland Stanford, San Francisco, CAL:
The Commission were under no mis-
apprehension regarding the facts, but
they still hold that II, rather than lake
the responsibility Of your own con-
AtruCtion, you call for authoritative
action, case muet be formally pre-
sented by petition and then inveati-
gated by them.
I. NJ, COOLEY, Chairman.
Tho Commission has today promul-
gated the following;
The Detroit, Grand Haven and Mil
waukee Railroad Company, having
made application to the Commission
for suspension OF the operation OF
section 4, OF the interstate commerce
law, go far as II would apply TO trsflic
taken across Lake Michigan TO Grand
Hlven, and destined TO points east Of
Detroit and st. Clair rivers, and ay.
ing assigned as o rea son for such sus-
pension that The sald railway company
owns aud operates line Of boats on
Lake Michigan, and has been doing &c
for many years past, aud by common
consent Of It's competitors. has been
allowed to charge less rate from Mil
waukee by way of Grand Haven on
the traffic above mentioned than il
charged on tho oil rail- lines by way Of
Chicsgo on the like traffic, and that the
making otsuch less Iatss by said rail
way company is just and fair as be
tween Milwaukee and Chicago, Il
necessary to enable said petitioner Ii
compete with lines by way o
Chicago and the said railway compa
ny aving further shown that be
tween certain points on its line east o
Like Michigan it has been Customary
to make rates on such traffic whicl
Brs greater for q thorter THAI for
longer hsul, which greater charges ar
reasonable and correspond TO thos
made by competing lines. And th
Commission having heard the appliCs
ton and duly considered il, and ii ap
pearipg to the Commission that tn
case Is a proper ono for temporary re
lief. " is now ordered that for a pe
Rod of ninety days from this date tn
operation Of the said fourth section @
the interstate commerce law he sur
pended as to the trf ffio from Milwau
kee over the petitioners line 80 far q
to per NIT the charging of greater rate
for he transportation Of property iron
Grsud Haven and points easterl
thereof 10 and including Ionia /
points east Of the Detroit and st. Ola
Tivers than are charged ON the liz
traffic iromiMilwaukeelto points east {
the same rivers sover the sam
line, and also for the transpo
talon Of property to Ionia an
Grand Haven and points between th
came from points east Of the Detro
aud st. Clsir rivers than are charge
OH the like traffic to Milwaukee oyC
the gsme line.
Bat ,ubjAct, nevertheless, to the r,
strction TIA such charges to an
from Grand Haven, Ionia and inte
media points shall not at any tin
excaed the forwarding rates on u
like aGic between the city Of ChicaI
and the same points east Of II G ca
Detroit and ST. Clair rivers, nor great
In proportinn to Milwaukee rates tn,
ave now charged by the petitioner
line And IL is further ordered tn